Ontario’s unemployment rate increases for fourth straight year

Ontario's unemployment rate was 7.7% in 2025 — a 0.7 increase from the year previous and the highest non-pandemic increase since 2012

Published Apr 30, 2026  •  Last updated 5 minutes ago  •  2 minute read

Ontario Premier Doug Ford attends a press conference following a First Ministers Meeting in Ottawa on Jan. 29, 2026. Photo by Blair Gable /Postmedia Network

OTTAWA — For the fourth straight year since the COVID-19 pandemic, Ontario’s unemployment rate is on the rise — with 2025’s increase the highest non-pandemic jump in the jobless rate in nearly 15 years.

Article content

That’s according to a new labour market report released Wednesday by the Financial Accountability Office of Ontario (FAO,) which showed that job creation in the province showed no sign of upward momentum last year.

Article content

Article content

“The pace of Ontario’s job creation continued to slow in 2025, with employment rising by 80,900 (1%,) down from 140,000 jobs (1.7%) added in 2024 and the slowest pace of job creation since 2015 excluding the pandemic,” read an excerpt from the report.

“Job gains in 2025 were concentrated among core-aged workers and youth, in eight out of 16 major industries and in 12 out of the province’s 15 major cities.”

Job creation, the report says, did not keep pace with the numbers of those seeking work — prompting Ontario’s unemployment rate to increase to 7.7% in 2025, a 0.7 increase from the year previous, and the highest jump since 2012, excluding the pandemic.

RECOMMENDED VIDEO

Job vacancies, the report stated, fell by 11.1% last year, with the overall vacancy rate falling from the 2.9% recorded in 2024 to 2025’s number of 2.6.

Article content

This drop on vacancies was seen in all industries and sectors, with healthcare and social assistance seeing the highest number of vacancies for the fourth year in a row.

“In tandem with the slower pace of employment gains, job vacancies declined by 22,100 (-11.1%) in 2025, and the overall job vacancy rate fell from 2.9% in 2024 to 2.6% in 2025,” the report read.

“Job vacancies have steadily trended lower since 2022, and the unemployment-to-job vacancy ratio increased from 3.1 in 2024 to 3.9 in 2025, indicating softer labour market conditions.”

Read More

1. 

   Young workers bearing brunt of Canada's 'frozen' job market: Survey
2. 

   LILLEY: Doug Ford's poll numbers slump as government seems aimless

3. 

   Watchdog group urges Queen's Park to legislate opposition to gun buyback

Liberals blame government for dismal numbers

In a statement, Ontario Liberal Finance Critic Stephanie Bowman claimed the dismal numbers come at the heels of an Ontario government more interested in itself than helping Ontario’s workers.

“This report is one more clear sign — from an independent office — that the plans of the grandstanding Doug Ford Conservative government are failing to protect the people of Ontario,” Bowman said.

“Unemployment is rising faster in Ontario than it is in every other province in the country, and it was getting worse long before U.S. tariffs. Ontario accounts for a 45% of Canada’s unemployed workers, even though the province is home to only 39% of Canada’s labour force.”

[email protected]

Article content